Earnings at Irish-backed healthcare group top €185m
EARNINGS at the UK-based healthcare group backed by well known Irish investors Dermot Desmond, JP McManus and John Magnier last year increased by 5pc to £163m (€185m).
New accounts filed by Barchester Healthcare Ltd to Companies House in the UK show that it recorded the earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) as revenues rose by 5pc to £563.9m in the 12 months to the end of December 31st last.
At the end of last year, the group provided over 12,000 beds in the UK.
In his chairman’s report, John Coleman said that increase in revenues was “underpinned by higher fee rates year on year”.
He added: “The group has a very strong balance sheet, with reduced bank and other debt, which leaves it free to explore ways of investing cash to support future growth in the scale of operations.” Mr Coleman said that the introduction of the National Living Wage in the UK in April 2016 “has increased the cost base of the group significantly and will continue to do so”.
The group’s pre-tax profits increased by 23pc, from £2.96m to £3.7m, last year.
The group recorded the pretax profits after paying out £17m in interest charges.
Operating profit increased by 15pc to £20.86m.
According to the directors, the group recorded the operating profits after restructuring costs of €1.9m, non-cash depreciation and amortisation costs of £27.29m and operating lease costs of £114m. The accounts show that £96.9m was paid to a firm owned by common controlling shareholders.
The directors said the increase in revenues was offset by an increase in labour costs and increases in agency staff due to staff shortages.
At the group last year, 5.1pc of hours were filled by agency staff compared to 3.9pc in 2015.
The directors state that they are pleased with the performance of the group and expect to see continued growth in revenue in the coming year.
At the end of last year, Barchester was among the top four largest providers in the UK’s long term care sector and has its 12,000 registered beds across a portfolio of 200 homes and seven independent hospitals. The group’s strategic report states that it is especially focused on the private pay market.
Accumulated profits at the group last year stood at £92m. Shareholder funds totalled £111.9m that included cash of £12m.
Numbers employed by the group last year decreased from 17,623 to 16,267. Staff costs last year increased from £270.3m to £283.7m.
Remuneration for directors decreased marginally from £1.63m to £1.6m. The remuneration for the highest paid director totalled £702,000.
The group’s net debt last year decreased from £151m to £150m.